Question 1 Assuming that the cost of capital of the firm is 12%, determine the payback period, the NPV and the IRR of the following projects:

a) An initial outlay of RM 100,000 resulting in a cash flow of RM 19,930 at the end of each year for the next 10 years.

b) An initial outlay of RM 100,000 resulting in a cash flow of RM 20,450 at the end of each year for the next 20 years.

c) An initial outlay of RM 100,000 resulting in a cash flow of RM 11,930 at the end of each year for the next 12 years.

d) An initial outlay of RM 100,000 resulting in cash flow of RM 28,430 at the end of each year for next 5 years.

Question 2 Determine the payback period, net present value and internal rate of return of the following projects. The cost of capital of the firm is 15%.

a) An initial outlay of RM 100,000 in a cash flow of RM 20,000 at the end of year 1, RM 50,000 at the end of year 2 and RM80,000 at the end of year 3.

b) An initial outlay of RM 100,000 in a cash flow of RM 80,000 at the end of year 1, RM 50,000 at the end of year 2 and RM 20,000 at the end of year 3.

c) An initial outlay of RM 100,000 resulting in a cash flow of RM20,000 at the end of year 1 through 5 and RM 50,000 at the end of year 6.